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The New Generation of ERP System Within Supply Chain Domain

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The New Generation of ERP System ----- Within Supply Chain Domain During the 1990s, Enterprise resource planning (ERP) systems were widely adopted and regarded as "the information backbone within the four walls of an enterprise" (MMH 2000). It ties together manufacturing, quality assurance, sales, distribution and finance by managing data from each area and plans whole company's resource use, from people to products. However, with the coming of the new millennium, a growing chorus of analysts had given ERP up for dead. Analyst Vinod Khosla of KPMG argued that "enterprise software is a broken model". Internet Week said that ERP systems were "losing some of their luster". Red Herring proclaimed "ER-Party's Over," and The Economist asked, "ERP RIP?" (Richard 1999) This collection, the five articles on "The New Generation of ERP System", (see appendices) argues whether "ERP is dead?", and provides the big picture of the next generation ERP system within the supply chain domain. ERP is dead? All the contributors of this collection have raised the weaknesses of the ERP. ...read more.


(MMH 2000) Supply chain management (SCM) enables the coordinated management of material and information flows throughout the chain from sources to customers. Sharing information is what transforms an ERP system into the backbone of a supply chain. As a result, many providers argue that the term ERP is becoming outdated. However, Regardless of the model, transactions are still at the heart of any electronic exchange. That's why ERP systems still have an important role in the new business environment. The order and inventory information that flows across an exchange is pulled together by an ERP system. (MMH 2000) ERP system within supply chain domain Nearly all contributors defined their own ERP system within the supply chain domain: Gartner Group calls it ERP II, while AMR Research Inc. prefers the term enterprise commerce management (ECM). (Doris 2001) One analyst has labelled such systems XRP, for extended resource planning. (Richard 1999) Instead of ERP think EAP, or enterprise application provider. (MMH 2000) ...The next generation ... ERP system, (Paul 2001) ...read more.


(Doris 2001) In the real world, all the major ERP vendors have announced or rolled out their "Web-centric" or "e-collaboration" products, while smaller specialty suppliers are already active in this new space. (Richard, Bob, MMH) Paul also illustrated the new ERP solution, which fully supports the supply chain, from procurement through sales without replacing the old ERP system. (Paul 2001) Despite the questions and the slowdown of the deployment, ERP is far from dead. In fact, it (the next generation of ERP) will emerge as the most important IT platform for the next decade. "Projections are for growth from about $14 billion this year to more than $52 billion annually in 2002 under estimation". (Richard 1999) Reference: 1. Doris Kilbane, Nuts and Bolts: Enterprise resource planning, http://www.midrangeerp.com/ASP/viewArticle.asp?strArticleId=40134, Supply Chain Technology News, July 2001 2. Paul Satre, Putting a fresh face on ERP, http://www.midrangeerp.com/ASP/viewArticle.asp?strArticleId=36275 Midrange Enterprise, March 2001 3. Richard W. Oliver, ERP is Dead! Long Live ERP! Management Review, Nov99, Vol. 88 Issue 10, p12 4. ERP for the Internet age, Modern Materials Handling, Aug2000, Vol. 55 Issue 9, p43 5. Bob Rosenbaum, A greatly exaggerated death for ERP http://www.midrangeerp.com/ASP/viewArticle.asp?strArticleId=31269 Supply Chain Technology News, December 2000 - 1 - ...read more.

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